Luxury Hotels' RevPAR Grows 10.6% in 2025, Economy Segment Declines for 18 Consecutive Months, Recovery Expected 2027
🏨 In 2025, U.S. ultra-luxury hotel RevPAR grew by 10.6% while economy hotels saw 18 months of consecutive declines. Premium room bookings hit a record 58%. Short-term rental market share rose to 15.5% from 9.9% in 2019. EMEA hotels' ADR increased by 6%, contrasting North America's 1.6% drop and Asia's 16.2% decline. By 2027, the economy segment is expected to recover. The K-shaped market forces hotels to either premiumize or optimize for cost-conscious travelers.
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